RERA: New realty law by May 1, set to cheer home buyers in Karnataka

BENGALURU: Karnataka is set to notify the Real Estate (Regulation and Development) Act by May 1. The Centre brought in the RERA Act, 2016, to protect the interests of home buyers and asked all states to adopt it within six months.

A dilly-dallying Karnataka will now expedite the process to notify the rules. "We are in the last stage of the process to notify the draft rules and bring in the legislation by May 1, as mandated by the central Act," said Rajeev Chawla, additional chief secretary to the housing department.

State housing minister M Krishnappa said he will hold a meeting this week to finalize the draft before placing it before the cabinet. Only a few states have adopted the Act so far. The Karnataka government had notified RERA draft rules last year.

Official sources said implementation of the RERA Act may get delayed because the government is showing no hurry to notify the rules and set up the regulatory body, as mandated in the RERA Act. This, they said, was because the government was under pressure from small builders, especially those involving MLAs from Bengaluru, who are seeking relaxation of certain stringent norms incorporated under the Centre's Act.

They want time to give possession of housesflats to buyers to avoid penalty provision under RERA for delayed delivery, and want the state government to notify rules in such a manner that only those projects that were launched after the Act comes into force from May 1 this year be brought under the ambit of the State's Act.

But Chawla said the government is bound to implement the Act from May 1 and they will make an interim arrangement till the new body is set up and a fullfledged office is established. He said the states have no power to dilute the provisions of the Centre's Act to favour builders.

The big real estate developers are hoping that the new Act will stabilize the housing market by throwing out illegal players. "RERA will put a lot of unorganized players out of the market as they will not be able to start any project before they have all the requisite certificates with them. This will create a trust in home buyers.But at the same time, property prices are expected to see an appreciation of 15-20%," said Suresh Hari, secretary, Credai-Bengaluru.